India's local gold buyers preferred to stay on the sidelines as prices stayed above the 14,000-rupee mark and on expectations of bigger falls amid the wedding season, traders said.
"Jewellers are not comfortable buying at such high prices," said Harshad Ajmera, proprietor with JJ Gold House, a bullion dealer in Kolkata.
"All are waiting for a fall below $850 or 13,500 (rupees per 10 grams) locally," added Ajmera.
MCX gold futures was at 14,023 rupees per 10 grams, lower by 72 rupees at 2:26 p.m., after a three-month high of 14,214 rupees in the previous session.
A rise in Indian gold prices to near record levels has led to higher scrap sales as consumers flocked to Mumbai's oldest gold bazaar, after days of lull, to sell their old gold and cash in on the price jump.
Jewellers, who had purchased gold during last Diwali are selling now, said Ajmera, adding that a lot of scrap has also entered the market.
"Demand will solely depend on prices," said Mayank Khemka, managing director with Khemka International in Delhi.
If prices stay as they are, then imports would take a beating, Khemka added.
